Protesting my property tax assessment

Everything’s bigger in Texas! Especially property taxes! While many tout this state’s lack of a state income tax, the flip side of this is that our property taxes are ridiculous. I guess the government is going to get its money one way or another.

Last year I paid property tax at the rate of 2.53% on the non-exempt value of my home. At that high of a rate, even a small reduction in appraised value can have a big effect on your taxes. That is why I have protested my property taxes for the second straight year.

Last year, I engaged a consulting firm, O’Connor and Associates, to protest the assessment on my behalf. After filling out a questionnaire about the condition of my home and completing a form appointing them as an agent before the appraisal district, they were able to reduce my assessment from around $162,000 to about $154,000, which reduced my taxes by about $25. Unfortunately I had to pay O’Connor a contingency fee of 50% of the tax savings.

While the consultant was somewhat effective, I was left with the feeling that the amount could have been lowered a lot more if something more than a questionnaire was offered as evidence. I also didn’t like having to give up half of the tax savings. So when I saw that my county was offering online protests, I decided I would do it myself this year. It was a simple online form to complete to declare the protest, based on which the appraisal district may choose to make a settlement offer via email. If I don’t like the offer, I can then appeal to the Appraisal Review Board where I can present evidence including photos and comparable sales.

Thinking of protesting? Based on my experience so far, here are my tips:

1. Know the deadlines for protests in your county. You can’t lower your taxable value if you miss the deadline!
2. If you choose to use a consultant, be sure to limit the term of the agency. I didn’t know to do that last year and my notice of appraised value went straight to the consultant.
3. When filing your protest, be factual but don’t be afraid to mention anything and everything that would lower your property value, both inside and out. Do your walls need new paint or does the carpet need replacing? What about those cracks in the driveway? Even if your landscaping isn’t as good as the neighbors, that may be a reason to lower the valuation. Go over your house with a fine-toothed comb and note EVERYTHING you find wrong.
4. Take a look at the appraised value of your neighbors as well, as unequal appraisal is often a fertile area for protests. For instance, my home was appraised at about $58 per square foot while my next door neighbor was appraised at about $57 and the house across the street was appraised at about $53.  For my 2,800 square foot house, the difference between $58 and $53 is almost $14,000 in valuation, which is about a $350 reduction in taxes. While no two homes are alike, it certainly is a powerful argument.
5. In most jurisdictions you have the right to review all of the evidence used to determine your appraised value. Review it and use it. Look for any error and exploit it.
6. Take pictures of any defects. Pictures are much more powerful evidence than a written description.

I will keep everyone updated on the status of my protest.